The Government of the Republic of Vanuatu has received a grant   from the Government of the United States of America through the Millennium Challenge Corporation (MCC) to support a five-year Program of investments in the Transport Sector, aimed at facilitating poverty reduction through economic growth. Vanuatu is now in the implementation phase of the program. The Program was developed by the country through a consultative process, is designed to reduce poverty through infrastructure development to enable farmers in rural areas to get their  produce to the markets and to foster development of the tourism industry.

The Government of Vanuatu has established MCA-Vanuatu as an independent Unit within the Ministry of Finance and Economic Management to be the legal entity responsible for the oversight and management of the implementation of the Compact. The MCA-Vanuatu Steering Committee and Management Unit have principal responsibility for the overall management of the implementation of the Program in a timely, effective, efficient and results-oriented manner in accordance with the terms of the Compact and relevant Supplemental Agreements.

Originally Vanuatu’s MCA Program (“Program”) consisted of two principal project activities: (i) civil works for the reconstruction or construction of priority infrastructure on eight islands, covering roads, wharfs, airstrips and warehouses (the “Infrastructure Activity”); and (ii) institutional strengthening efforts in the Public Works Department (“PWD”), including the provision of plant and equipment for maintenance of the infrastructure (the “Institutional Strengthening Activity”). However due to various unforeseen economic circumstances the scope of work has been reduced to funding only two road projects on two islands with a reduce scope of institutional strengthening.